ML101170059

Letter from Reed College Enclosed Self Guarantee Letter Requested by the RAI Dated December 10, 2009

ML101170059
Person / Time
Site:	Reed College
Issue date:	04/19/2010
From:	Frantz S Reed College
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
TAC ME1583
Download: ML101170059 (3)

Text

REED COLLEGE REACTOR FACILITY 3203 Southeast Woodstock Boulevard April 19, 2010 Portland, Oregon ATTN: Document Control Desk 97202-8199 U S. Nuclear Regulatory Commission Washington, DC 20555-0001 telephone 503/777-7222 Docket: 50-288 fax License No: R-112 503/777-7274

Subject:

RAI TAC NO. ME1583 email reactor@reed.edu web Attached is the Self Guarantee Letter requested by the subject RAI dated http://reactor.reed.edu December 10, 2009. The response and attachments do not contain any sensitive information.

Please contact us if you have any questions. Thank you.

I declare under penalty of perjury that the foregoing is true and correct.

Executed on /7 eA00- 2o0 Step en G. Frantz Director, Reed Research Reactor.

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REED COLLEGE Financial Assurance for Cost of Decommissioning Activities Self-Guarantee Agreement 3203 Southeast Guarantee made by Reed College, a nonprofit college, organized under the laws of the State of Oregon, herein Woodstock Boulevard referred to as "guarantor," to the U. S. Nuclear Regulatory Commission, on behalf of the college as licensee.

Portland, Oregon 97202-8199 Recitals telephone 1 The guarantor has full authority and capacity to enter into this self-guarantee by the bylaws of the Trustees of Reed College.

503/771-1112 2 This self-guarantee is being issued to comply with regulations issued by NRC, an agency of the U. S.

Government, pursuant to the Atomic Energy Act of 1954, as amended, and the Energy Reorganization Act of 1974. NRC has promulgated regulations in Title 10, Chapter I of the Code of Federal Regulations, Parts 50 and 70, which require that a holder of, or an applicant for, a materials license issued pursuant to 10 CFR Parts 50 and 70 provide assurance that funds will be available when needed for required decommissioning activities.

3 The self-guarantee is issued to provide financial assurance for decommissioning activities for the licenses and facilities shown.

Certified Amounts of -

License # Estimate based on C osti Estimats and Docket # License Description year 1992 dollars 2010 Cost Estimates (3% per year increase)

Research and test reactor R- 112 and related facilities located 50-288 at Reed College, Portland, $500,00 $829,412 OR 97202 Subtotal $829,412 25% contingency fund $207,353 Total Estimated Costs: $1,036,764 4 The guarantor meets or exceeds the following financial test criteria for a nonprofit College that issues bonds. Specifically, the most recent rating as of 2009 for the college was AA-/A-I+ by Standard and Poor's and Aa2/VMIGI by Moody's Investors Service, and agrees to comply with all notification requirements as specified in 10 CFR Part 50, and Appendix A to 10 CFR Part 30.

5 The guarantor does not have a parent company holding majority control of its voting stock.

6 Decommissioning activities as used below refer to the activities required by 10 CFR Part 50 for decommissioning of the facilities identified above.

7 Pursuant to the guarantor's authority to enter into this guarantee, the guarantor guarantees to the NRC that the guarantor shall:

(a) carry out the required decommissioning activities, as required by the licenses listed above.

8 The guarantor agrees to submit revised financial statements, financial test data annually within 90 days, of the completion of our fiscal year-end audit.

9 The guarantor agrees that if, at the end of any fiscal year before termination of this self-guarantee, it fails to meet the self-guarantee financial test criteria, it shall send within 90 days of the end of the fiscal year, by certified mail, notice to the NRC that it intends to provide alternative financial assurance as

specified in 10 CFR Part 30. Within 120 days after the end of the fiscal year, the guarantor shall establish such financial assurance.

10 The guarantor agrees that if it determines, at any time other than as described in Recital 9, that it no longer meets the self-guarantee financial test criteria or it is disallowed from continuing as a self-guarantor, it shall establish alternative financial assurance as specified in 10 CFR Parts 50 within 30 days.

11 The guarantor, as well as its successors and assigns, agrees to remain bound jointly and severally under this guarantee notwithstanding any or all of the following: amendment or modification of the license or NRC-approved decommissioning funding plan for that facility, the extension or reduction of the time of performance of required activities, or any other modification or alteration of an obligation of the licensee pursuant to 10 CFR Parts 50 and 70.

12 The guarantor agrees that it shall be liable for all litigation costs incurred by the NRC in any successful effort to enforce the agreement against the guarantor.

13 The guarantor agrees to remain bound under this self-guarantee for as long as it, as licensee, must comply with the applicable financial assurance requirements of 10 CFR Part 50, for the previously listed facilities, except that the guarantor may cancel this self-guarantee by sending notice by certified mail to the NRC, such cancellation to become effective not before an alternative financial assurance mechanism has been put in place by the guarantor.

14 The guarantor agrees that if it, as licensee, fails to provide alternative financial assurance as specified in 10 CFR Parts 50 and 70 and obtain written approval of such assurance from the NRC within 90 days after a notice of cancellation by the guarantor is received by the NRC from the guarantor, the guarantor shall make full payment under the self-guarantee.

15 The guarantor expressly waives notice of acceptance of this self-guarantee by the NRC. The guarantor also expressly waives notice of amendments or modifications of the decommissioning requirements.

16 If the guarantor files financial reports with the U.S. Securities and Exchange Commission, then it shall promptly submit them to its independent auditor and to the NRC during each year in which this self-guarantee is in effect.

17 The guarantor agrees that if, at any time before termination of this self-guarantee, its most recent bond issuance ceases to be rated in the category of "A" or above by either Standard & Poor's or Moody's, it shall provide notice in writing of such fact to NRC within 20 days after publication of the change by the rating service.

I hereby certify that this self-guarantee is true and correct to the best, of my knowledge.

Effective date: 4/ Afilc to Reed College By:

Edwin 0. Mclý ,V P / Tesr7urer State of Oregon, County of Multnomah OPFICIALS8AL Signed before me this 14 th day of April, 2010. VMAN NORMAN I- NOTARY PUBUC-OREGON COMMISSION NO. 433488 Vivian Norman, Notary Public - State of Oregon MY COMMISSION EIRES NOV. 13, 2012